Notice of Final Action: Crude Helium Sale and Auction for Fiscal Year 2016 Delivery

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Federal Register / Vol. 80, No. 163 / Monday, August 24, 2015 / Notices
boundaries will be made in the Record
of Decision for the Northwest Colorado
Greater Sage-Grouse Plan Amendment
and EIS. The Northwest Colorado
Greater Sage-Grouse Plan Amendment
and EIS will fully analyze applicable
Greater Sage-Grouse conservation
measures, consistent with BLM
Instruction Memorandum No. 2012–
044. The BLM expects to make a
comprehensive set of decisions for
managing Greater Sage-Grouse on lands
administered by the GJFO in the ROD
for the Northwest Colorado Greater
Sage-Grouse Plan Amendment. That
decision will amend the Approved
RMP. In the interim, leasing in Greater
Sage-Grouse habitat will continue to be
deferred until a final decision has been
made on the Northwest Colorado
Greater Sage-Grouse Plan Amendment.
The Approved RMP includes some
implementation decisions, which are
displayed and numbered as
implementation decisions in the
Approved RMP. Implementation
decisions are generally appealable to the
Interior Board of Land Appeals under 43
CFR 4.410. For example, the decisions
designating routes of travel are
implementation decisions and are
appealable under 43 CFR part 4. The
route decisions are displayed as an
attachment to Appendix M of the
Approved RMP. Any party adversely
affected by the route designations may
appeal within 30 days of publication of
this Notice of Availability pursuant to
43 CFR, part 4, subpart E. The appeal
should state the specific route(s), as
identified in Appendix M of the
Approved RMP, on which the decision
is being appealed. The appeal must be
filed with the Grand Junction Field
Manager at the address listed above.
Please consult the appropriate
regulations (43 CFR, part 4, subpart E)
for further appeal requirements.
Authority: 40 CFR 1506.6.
SUPPLEMENTARY INFORMATION:
Gregory P. Shoop,
BLM Colorado Associate State Director.
[FR Doc. 2015–20706 Filed 8–21–15; 8:45 am]
BILLING CODE 4310–JB–P
DEPARTMENT OF THE INTERIOR
Bureau of Land Management
[LLNM006200 L99110000.EK0000 XXX
L4053RV]
Notice of Final Action: Crude Helium
Sale and Auction for Fiscal Year 2016
Delivery
Bureau of Land Management,
Interior.
ACTION: Notice.
AGENCY:
The Secretary of the Interior
(Secretary), through the Bureau of Land
Management (BLM) New Mexico State
Office, is issuing this Final Notice to
conduct a sale and auction from the
Federal Helium Program, administered
by the BLM New Mexico Amarillo Field
Office. The BLM will use the sale and
auction process outlined in this Notice
for the sale and auction that the Helium
Stewardship Act of 2013 (HSA) requires
the BLM to conduct during fiscal year
(FY) 2015 for delivery in FY 2016. This
action takes into consideration public
comments received as a result of the
Notice of Proposed Action published in
the Federal Register on June 12, 2015.
DATES: This Notice is effective on
August 24, 2015.
FOR FURTHER INFORMATION CONTACT:
Robert Jolley, Amarillo Field Manager,
at 806–356–1002. Persons who use a
telecommunications device for the deaf
(TDD) may call the Federal Information
Relay Service (FIRS) at 1–800–877–
8339. The FIRS is available 24 hours a
day, 7 days a week, to leave a message.
You will receive a reply during normal
business hours.
SUMMARY:
A. Purpose and Background
In October 2013, Congress passed the
HSA (Pub. L. 113–40). The HSA
requires the Department of the Interior,
through the BLM Director, to offer for
sale and auction annually a portion of
the helium reserves owned by the
United States and stored underground
in the Cliffside Gas Field, near Amarillo,
Texas (50 U.S.C. 167d(b)). On July 22,
2014, the BLM published a ‘‘Final
Notice for Implementation of Helium
Stewardship Act Sales and Auctions’’ in
the Federal Register, (79 FR 42808)
(2014 Final Notice). The 2014 Final
Notice contained information about the
HSA, definitions of terms used in the
Notice, the reasons for the action, and
a process for conducting the auctions
and sales in FY 2014. The 2014 Final
Notice is available at the BLM helium
operations Web site at: http://
www.blm.gov/nm/helium.
The BLM published a ‘‘Notice of
Proposed Action: Crude Helium Sale
and Auction for Fiscal Year 2016
Delivery’’ in the Federal Register on
June 12, 2015 (80 FR 33548). The BLM
requested comments regarding elements
of the FY 2016 sale and auction. These
elements included:
a. The process for arriving at the price
for helium to be sold at the Phase B
auction and sale, as described in section
1.01 of this Notice;
b. The format of the auction, as
described in section 1.04 of this Notice;
c. Who will be allowed to purchase
helium in the FY 2016 Phase B sale, as
described in section 2.01 of this Notice;
and
d. The process for allocating helium
for the FY 2016 Phase B sale, as
described in section 2.02 of this Notice.
A summary of changes made as a
result of those comments is provided
below:
SUMMARY OF CHANGES
Affected text
Explanation of change
tkelley on DSK3SPTVN1PROD with NOTICES
Volumes Offered in the FY 2016 Helium Auction and Sale.
Section 1.01 ..........................................
Section 1.03 ..........................................
Section 2.01 ..........................................
Section 2.02 ..........................................
Section 2.03 ..........................................
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Added non-allocated and adjusted sale volumes.
Added the additional three criteria from the statute regarding pricing.
The BLM set the auction date as August 26, 2015, with auction results published on the BLM Web site
on August 27, 2015; the BLM set the sale date for September 1, 2015.
The BLM re-instituted the non-allocated sale.
Added explanation for decision to reinstitute non-allocated sale.
Added information on how FY 2016 Phase B sale will be allocated among those participating in the
non-allocated sale.
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Federal Register / Vol. 80, No. 163 / Monday, August 24, 2015 / Notices
B. Public Comment: Analysis of
Comments and Changes
In response to the invitation in the
Notice of Proposed Action, six
commenters, who are refiners and nonrefiners, submitted 22 comments
totaling 8 pages. The BLM developed a
table of comments and responses, which
is available for public review at:
www.blm.gov/nm/Helium2016. Based
upon the comments received, the BLM
has revised the process for the FY 2016
sale and auction.
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C. Volumes Offered in the FY 2016
Helium Auction and Sale
Table 1 identifies the volumes to be
offered for auction and sale in FY 2015
for FY 2016 delivery.
TABLE 1—PROJECTED VOLUMES FOR PHASE B AUCTION AND SALES FOR FY 2016 DELIVERY
Fiscal year
(FY)
FY 2016 ** ........
Forecasted
production
capability
(NITEC Study)
In-kind sales
(sales to
Federal users)
Total remaining
production
available for
sale/auction or
delivery
Volume
available for
auction
Previously sold
in FY 2014
Advanced sale
Volume
available for
non-allocated
sale
Volume
available for
sale
MMcf *
MMcf
MMcf
MMcf
MMcf
MMcf
MMcf
1,310
160
1,150
*** 300
**** 250
85
515
* MMcf means one million cubic feet of gas measured at standard conditions of 14.65 per square inch atmosphere (psia) and 60 degrees Fahrenheit.
** Delivery for FY 2016 sales and auctions will be subject to a new storage contract beginning October 1, 2015.
*** 25% of total production capacity after deducting In-Kind (rounded).
**** In accordance with the HSA, 250 MMcf of FY 2016 volumes were offered in FY 2014.
tkelley on DSK3SPTVN1PROD with NOTICES
D. FY 2016 Helium Auction
1.01 What is the minimum FY 2016
Phase B auction price and the FY 2016
Phase B sales price, and how were those
prices determined? The minimum FY
2016 Phase B auction price is $100 per
Mcf (one thousand cubic feet of gas
measured at standard conditions of
14.65 psia and 60 degrees Fahrenheit).
The BLM established the minimum
auction price and will calculate the FY
2016 Phase B sale price using four
criteria established in the HSA, in the
following priority: (A) The sale price of
crude helium in auctions held by the
Secretary; (B) Price recommendations
and disaggregated data from a qualified,
independent third party who has no
conflict of interest, who shall conduct a
confidential survey of qualifying
domestic helium transactions; (C) The
volume-weighted average price of all
crude helium and pure helium
purchased, sold, or processed by
persons in all qualifying domestic
helium transactions; and (D) The
volume-weighted average cost of
converting gaseous crude helium into
pure helium.
The BLM will announce the FY2016
Phase B sale price after the auction has
concluded and the BLM completes its
analysis of the auction information. The
BLM will post the crude helium price
for the FY2016 Phase B sale, effective
October 1, 2015.
1.02 What will happen to the helium
offered but not sold in the helium
auction? Any volume of helium offered,
but not sold in the FY 2016 Phase B
auction, will be added to the 600 MMcf
available for sale and will be offered for
sale in the FY 2016 Phase B sale.
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1.03 When will the sale and auction
take place? The BLM intends to offer
helium for FY 2016 according to the
following schedule:
August 26, 2015—FY 2016 Phase B
helium auction held in Amarillo,
Texas
August 27, 2015—FY 2016 Phase B
helium auction results published on
the BLM Web site
September 1, 2015—Phase B Helium
Sale
September 30, 2015—Revenues from
auction and sale due to the BLM
1.04 What is the auction format?
The auction will be a live auction, held
in the main conference room of the
Amarillo Field Office at 1:00 p.m.
central time, on August 26, 2015. The
address is 801 South Fillmore, Suite
500, Amarillo, TX 79101. Anyone
meeting the HSA definition of a
qualified bidder may participate in the
auction. The logistics for the auction
and the pre-bid qualification form is
included in a document entitled
Auction Guide at www.blm.gov/nm/
helium2016. Questions related to the
auction can be submitted by phone to
the BLM at 806–356–1001.
1.05 Who is qualified to purchase
helium at the Phase B auction? Only
qualified bidders, as defined in 50
U.S.C. 167(9), may participate in and
purchase helium at the Phase B auction.
The BLM will make the final
determination of who is a qualified
bidder using the HSA’s definition of a
qualified bidder, regardless of whether
or not that person was previously
determined to be a qualified bidder.
1.06 How many helium lots does the
BLM anticipate offering at the FY 2016
Phase B auction? The BLM anticipates
auctioning 300 MMcf in a total of 18 lots
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for FY 2016. The lots would be divided
as follows:
(8) lots of 25 MMcf each;
(5) lots of 15 MMcf each; and
(5) lots of 5 MMcf each.
1.07 What must I do to bid at
auction? The BLM has described the
live auction procedures, including
detailed bidding instructions and prebid registration requirements, in a
document entitled FY 2016 Helium
Auction Notice and Guide at
www.blm.gov/nm/helium2016.
1.08 When will helium that is
purchased at sale or won at auction be
available in the purchaser’s storage
account? The BLM will transfer the
volumes purchased in the FY 2016
Phase B auction and sale to the buyer’s
storage accounts beginning on the first
day of the month following receipt of
payment.
E. FY 2016 Phase B Helium Sale
2.01 Who will be allowed to
purchase helium in the FY 2016 Phase
B sale? The Phase B crude helium sale
will be separated into two distinct
portions, a non-allocated portion and an
allocated portion. The non-allocated
portion will be ten percent of the total
amount offered for sale for FY2016 and
will be available to those storage
contract holders, as of August 31, 2015,
who do not have ability to accept
delivery of crude helium from the
Federal Helium Pipeline (as defined in
50 U.S.C. 167(2)). The allocated portion
will be ninety percent of the total
amount offered for sale for FY2016 and
will be available to any person
(including individuals, corporations,
partnerships, or other entities) with the
ability to accept delivery of crude
helium from the Federal Helium
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Pipeline (as defined in 50 U.S.C.
167(2)).
2.02 Why did the BLM re-institute
the non-allocated sale? The BLM
specifically requested information
regarding who will be allowed to
purchase helium in the FY 2016 Phase
B sale in the draft Federal Register
notice. Based on comments received,
the BLM determined that a nonallocated sale would increase
participation in the Federal Helium
Program and maximize the total
financial return to the taxpayer.
2.03 How will helium sold in the
FY2016 Phase B sale be allocated
among those participating in the nonallocated sale? The non-allocated sale
will be made available to all qualified
entities not eligible to participate in the
allocated sales. The minimum volume
that can be requested is 1 MMcf. The
total volume available for the nonallocated portion of the sale is 85 MMcf.
Any volumes not sold at auction will be
distributed between the non-allocated
(10 percent) and the allocated sale (90
percent). Any volumes not purchased at
the non-allocated sale will be sold in the
allocated sale. A hypothetical example
is provided in a document entitled
‘‘Hypothetical example of how the FY
2016 Phase B Non-Allocated Sale would
be conducted’’ at www.blm.gov/nm/
helium2016.
2.04 How will the helium sold in the
FY 2016 Phase B sale be allocated
among the persons to accept delivery of
crude helium from the Federal Helium
Pipeline? Any person desiring to
participate in the allocated portion of
the FY 2016 Phase B sale needs to report
its excess refining capacity and
operational capacity by August 14,
2015, using the Excess Refining
Capacity form, which can be
downloaded at http://www.blm.gov/nm/
heliumreporting, or in a link entitled
‘‘Required Forms for Helium Reporting’’
at www.blm.gov/nm/helium2016. Each
person participating in the sale will
then be allocated a proportional share
based upon that person’s operational
capacity. A hypothetical example is
provided in a document entitled
‘‘Hypothetical Example of how the FY
2016 Phase B Allocated Sale would be
conducted’’ at www.blm.gov/nm/
helium2016.
2.05 How does a person apply for
access to the Federal Helium Pipeline
for the purpose of taking crude helium?
The steps for taking crude helium are
provided in the BLM’s Helium
Operations Web site in a document
entitled ‘‘How to Set Up a Storage
Account and Pipeline Access’’ at
http://www.blm.gov/nm/helium2016.
Reporting forms show the due dates for
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16:48 Aug 21, 2015
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each report, and can be found in a
document entitled ‘‘Required Forms for
Helium Reporting’’ at www.blm.gov/nm/
helium2016. The length of time required
to apply for and obtain access to the
Federal Helium Pipeline will vary based
on the person’s plans for plant
construction, pipeline metering
installation, and other variables. The
BLM is available to provide technical
assistance and information, including
contact information for applying for
access and information about any
applicable National Environmental
Policy Act requirements.
2.06 What will happen if one or
more persons request an amount other
than the person’s share of the volume
offered for either the allocated or the
non-allocated sale? If one or more
persons request less than their share(s),
any other person(s) who request(s) more
than their share(s) will be allowed to
purchase the excess volume based on
the proportionate shares of operational
capacity of all persons requesting more
than their initial shares.
2.07 What will happen if the total
amount requested by persons is less
than the 515 MMcf offered in the FY
2016 Phase B allocated sale? Any excess
volume not sold in the FY 2016 Phase
B allocated sale may be available for
future sale or auction.
F. Delivery of Helium in FY 2016
3.01 When will I receive the helium
that I purchase in a sale or win based
on a successful auction bid? Helium
purchased at the FY 2016 sale or won
at the FY 2016 auction will be delivered
starting October 1, 2015, in accordance
with the crude helium storage contract.
The intent is to ensure delivery of all
helium purchased at sale or won at
auction up to the BLM’s production
capability for the year.
3.02 How will the BLM prioritize
delivery? The HSA gives priority to
Federal In-Kind helium (i.e., helium
sold to Federal users) (50 U.S.C.
167d(b)(1)(D)) and (b)(3)). After meeting
that priority, the BLM will make
delivery on a reasonable basis, as
described in the crude helium storage
contract, to ensure storage contract
holders who have purchased or won
helium at auction have the opportunity
during the year to have that helium
produced or refined in monthly
increments.
G. Background documents
Supplementary documents referenced
in this Notice are available at the BLM
helium operations Web site at: http://
www.blm.gov/nm/helium2016, and
include the following:
a. The HSA (50 U.S.C. 167);
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b. Proposed Notice, June 22, 2015;
c. Consolidated Comment Sheet from
Proposed Notice;
d. FY 2016 Helium Auction Notice
and Guide;
e. Table of Projected Volumes for
Sales and Auctions for Delivery for FY
2017–FY 2021 (informational);
f. Hypothetical example of how the
FY 2016 Phase B Allocated Sale would
be conducted (informational);
g. Hypothetical example of how the
FY 2016 Phase B Non-Allocated Sale
would be conducted (informational);
h. Schedule for Helium Auction and
Sale;
i. How to Set Up a Storage Account
and Pipeline Access;
j. 2011 Reference Helium Storage
Contract (informational); and
k. Required Forms for Helium
Reporting.
Authority: The HSA of 2013, Public Law
113–40, codified to various sections in 50
U.S.C. 167–167q.
Corey Grant,
Acting State Director.
[FR Doc. 2015–20861 Filed 8–19–15; 4:15 pm]
BILLING CODE 4310–FB–P
DEPARTMENT OF THE INTERIOR
Bureau of Land Management
[LLCAD01000 L12100000.MD0000
15XL1109AF]
Meeting of the California Desert
District Advisory Council
Notice is hereby given, in
accordance with Public Laws 92–463
and 94–579, that the California Desert
District Advisory Council (DAC) to the
Bureau of Land Management (BLM),
U.S. Department of the Interior, will
participate in a field tour of BLMadministered public lands on Friday,
September 11, 2015 from 8:00 a.m. to
5:00 p.m. and will meet in formal
session on Saturday, September 12,
2015, from 8:00 a.m. to 5:00 p.m. at the
Hilton San Diego Mission Valley, 901
Camino Del Rio South, San Diego, CA
92108. Agenda for the Saturday meeting
will include updates by council
members, the BLM California Desert
District Manager, five Field Managers,
and council subgroups. The focus topic
for the meeting will be the South Coast
Resource Management Plan/
Acquisitions. Final agendas for the
Friday field trip and the Saturday public
meeting will be posted on the DAC Web
page at http://www.blm.gov/ca/st/en/
info/rac/dac.html when finalized.
SUPPLEMENTARY INFORMATION: All DAC
meetings are open to the public. Public
SUMMARY:
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